Home Brent oil hits 2019 high above $65
FXStreet News

Brent oil hits 2019 high above $65

Brent oil hit fresh year-to-date highs above $65.00 earlier today and looks set to extend the three-day winning streak on rising hopes of deeper supply cuts by major exporters.  

As of writing, Brent oil is changing hands at $64.88 per barrel, having hit a 2019 high of $65.10 sixty minutes ago.  

The market is paying little heed to US-China trade tensions amid rising hopes of a deeper production cut by OPEC+ (OPEC and non-OPEC countries like Russia).  

Saudi Arabia, the de facto leader of OPEC, said earlier this week that it would reduce output  even more  than the deal called for. The Kingdom and its OPEC partners have agreed to cut crude output by a joint 1.2 million barrels per day (bpd).

Further, Russia is withholding supply to prop up prices. The nation’s output has declined by 80,000-90,000 barrels per day from its level in October.  

The US oil output, however, continues to counter the measures implemented by OPEC+. Analysts expect US oil production to rise past 12 million bpd soon, having hit a record 2 million bpd last year.  
 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.